Stearin stocks accumulate after CPO export ban
Stearin stocks accumulate after CPO export ban
JAKARTA (JP): Stearin stocks have been accumulating in the
storage tanks of palm oil refining companies since a complete ban
on the exports of crude palm oil (CPO) and all its derivatives
began January.
Data released by the internal trade directorate general here
showed that the Bukit Kapur Reksa Group in North Sumatra held the
largest stock of 45,950 tons of stearin as of the end of last
month.
Total stearin stocks reported by the 17 major producers to the
directorate general as of last month amounted to 106,540 tons.
Since domestic demand for stearin is very small, CPO companies
have been forced to hold their stearin, usually exported, in
their storage tanks pending the lifting of the blanket export ban
early next month.
Stearin is a byproduct of the refining of CPO. According to
industry analysts, the refining of one ton of CPO into olein
produces 230 kilograms of stearin.
The other major producers of stearin last month included the
Musim Mas Group with 22,300 tons, Hasil Karsa Group with 11,546
tons and Gapki with 6,073 tons.
Industry analysts here wonder how the Bukit Kapur Reksa Group
could have piled up such large a stock of stearin because its
stearin output, as reported to the directorate general, was only
5,189 tons for January.
The domestic trade directorate general explained in a press
release that the stearin stocks reported as of last month by the
17 producers were a cumulative total, including those carried
over from the previous months.
Yet, analysts believe Bukit Kapur Reksa's reported stearin
stock was exaggerated as this would mean the group had produced
about 150,000 tons of olein last month alone.
An executive of the Cooking Oil Producers Association
commented that even though the stock totals were cumulative, that
volume was still questionable.
"Where have they sent so much olein? Moreover, CPO mills
usually export most of their stearin as soon possible to reduce
inventory costs and the ban on stearin export was enforced only
last month," the executive said.
The 17 CPO producers also reported holding 66,980 tons of palm
kernel oil last month due to the impact of the blanket export ban
on CPO and all its derivatives. (vin)